Abstract
The integration of technology in Accounting Information Systems is a crucial factor that significantly contributes to the improvement of efficiency, accuracy, and overall performance within the dynamic landscape of Accounting Information Systems. This recognition stems from the realization that such integration and alignment are essential for achieving success in this dynamic environment. This conceptual paper aims at providing a deeper understanding of its theoretical foundations and proposing a conceptual framework for future investigation. It seeks to examine the crucial element of "Technology Fit" in the context of Accounting Information Systems and its significant influence in enhancing organizational information processes. This is done by looking at the related past research to establish a theoretical framework that seeks to offer a comprehensive correlation between technology fit and the optimization of Accounting Information Systems performance. These factors include organizational goals, system requirements, and user preferences. The integration of technology into Accounting Information Systems has been shown to improve efficiency through the streamlining of accounting processes, automation of routine tasks, and reduction of manual intervention. The incorporation of technology within the Accounting Information Systems framework serves to enhance the process of making well-informed decisions, promote more effective financial analysis, and streamline the execution of strategic planning initiatives. The aforementioned improvements collectively result in an overall enhancement of organizational performance, leading to increased productivity and bolstered stakeholders’ confidence. In order to provide additional guidance for organizations aiming to enhance the effectiveness of their Accounting Information Systems through technology fit, this paper presents practical recommendations.
Keywords: Accounting Information Systems (AIS), Conceptual Analysis, Optimization, Organizational Performance, Technology Fit
Introduction
Accounting Information Systems (AIS) play a crucial role in contemporary business environments, characterized by their dynamic and ever-changing nature. These systems serve as the foundation of organizations, offering vital data that supports decision-making processes, facilitates financial reporting activities, and aids in strategic planning endeavors. Accounting Information Systems (AIS) design will also affect organizational performance (Hosain, 2019). The incorporation of technology within this system has significantly contributed to the enhancement of operational efficiency, precision, and overall performance.
The global trend of digitalization in business operations has led to a significant transformation in Accounting Information Systems (AIS). These systems have evolved from conventional manual approaches to advanced technology-driven solutions. In the contemporary era, organizations are compelled to prioritize the incorporation of technology in order to maintain competitiveness (Golochalova et al., 2020). The seamless integration of technology has transitioned from being a discretionary choice to an essential requirement. The alignment of technology with the specific needs and objectives of an organization, known as technology fit, is recognized as a crucial factor in the successful implementation of Accounting Information Systems (AIS).
The incorporation of technology into Accounting Information Systems (AIS) has garnered considerable interest from both researchers and professionals in recent times. The existing body of literature pertaining to technology fit in the context of Accounting Information Systems (AIS) centers on the concept of aligning technological solutions with the unique requirements and goals of an organization in order to attain the highest level of system performance (Brown, 2020). Munaf et al. (2019) revealed that the capabilities of the Accounting Information System (AIS) in conjunction with the strategy to leverage the use of technology will increase the productivity of the company.
The importance of technology fit in enhancing the performance of an Accounting Information System (AIS) cannot be overstated. The alignment of technology with an organization's accounting processes has been found to have several benefits. Firstly, it improves the accuracy of data, ensuring that financial information is reliable and trustworthy. Secondly, it reduces the time required for processing accounting tasks, leading to increased efficiency and productivity. Lastly, it facilitates improved financial decision-making by providing timely and accurate information that can be used to inform strategic choices. The concept of technology fit facilitates the seamless incorporation of data originating from diverse sources, resulting in a comprehensive perspective of financial information. Consequently, this empowers stakeholders by equipping them with practical and implementable insights. In addition, the attainment of an optimal technology fit serves to bolster data security measures and effectively address potential risks inherent in financial transactions, thereby safeguarding the sensitive information of the organization.
Although there are clear benefits, the attainment of technology fit in Accounting Information Systems (AIS) is not devoid of obstacles. Several obstacles commonly encountered in organizations are resistance to change among employees, limitations in resources, and a deficiency in technological expertise. Furthermore, the process of choosing the most suitable technology that effectively corresponds to the distinct needs of an organization can present challenges that are intricate and require a significant investment of time. As such, there is a need for further empirical investigation to confirm the correlation between technology fit and AIS performance across many industries and organizational settings. In addition, there is a lack of empirical investigations to verify the effectiveness of suggested framework in various industries and organizational contexts.
The main aim of this conceptual analysis is to provide insight into the significance of technology fit in enhancing the optimization of Accounting Information Systems (AIS) by focusing on the complex interplay between technology and Accounting Information Systems (AIS), with the goal of elucidating the fundamental theoretical principles that govern their harmonization. Furthermore, this paper aims to present an innovative conceptual framework that can function as a guiding model for organizations striving to attain technology fit and subsequently improve the performance of their Accounting Information Systems (AIS).Specifically, this paper attempts to identify the four components of the framework: (1) Alignment between technology and the organization's needs and goals. (2) AIS Characteristics. (3) Organizational context and (4) Technology adoption model.
The present paper is structured in the following manner, the literature review will serve as a fundamental basis for comprehending the current corpus of knowledge pertaining to the alignment of technology and Accounting Information Systems (AIS). In the following section, a conceptual framework that is informed by pertinent theoretical perspectives will be presented. This paper will subsequently undertake a conceptual analysis, wherein it will explore the crucial factors that affect the alignment of technology within the Accounting Information Systems (AIS) and its subsequent influence on the overall performance of the system. In conclusion, this paper will provide an analysis of the practical implications and recommendations derived from the conceptual framework. Additionally, it will conclude with suggestions for future research endeavors.
Literature Review
Accounting Information Systems (AIS) play a crucial role in facilitating financial management processes within organizations. Financial systems play a crucial role in facilitating the integration of financial transactions with managerial decision-making processes. By providing a comprehensive and up-to-date perspective on an organization's financial well-being, these systems effectively bridge the gap between financial operations and strategic decision-making. The successful application of the Accounting Information Systems (AIS) would aid in motivating and pursuing operational changes within the company and enhancing the excellence of decision-making at a corporate level (Gelinas et al., 2018). Artificial intelligence systems play a crucial role in the automation of routine accounting tasks, thereby mitigating the possibility of human error and enhancing the efficiency of data processing. Additionally, these systems play a crucial role in ensuring adherence to financial reporting standards, tax regulations, and various legal obligations. The utilization of Accounting Information Systems (AIS) enables businesses to gain strategic insights, enabling them to make well-informed decisions, improve operational performance, and sustain a competitive advantage in the global market.
The concept of technology fit within the context of Accounting Information Systems (AIS) is derived from the concept of "fit" as proposed by Venkatesh and Davis (2000). According to their proposition, the effectiveness of implementing a technology is dependent on its compatibility with the organizational context. Within the realm of Accounting Information Systems (AIS), the concept of technology fit pertains to the degree of alignment between the selected technology and the distinct requirements and procedures of an organization's accounting function. The importance of technology fit in determining the outcomes of Accounting Information Systems (AIS) implementations, including its effects on data accuracy, decision-making processes, and financial reporting, has been widely acknowledged. The concept of "Technology Fit" pertains to the alignment between technology solutions and the distinct needs and objectives of an organization. Within the realm of Accounting Information Systems (AIS), the concept of technology fit pertains to the degree to which the selected technological solutions harmonize cohesively with the accounting processes and prerequisites of the entity. The achievement of technology fit is crucial in ensuring that an Accounting Information System (AIS) is capable of adapting and responding to the specific demands of an organization. This, in turn, leads to an enhancement of the overall performance and effectiveness of the system.
The importance of technology fit in enhancing the performance of an Accounting Information System (AIS) cannot be overstated as it led to several benefits. These include improving data accuracy and reducing time to process accounting tasks, which ultimately facilitates improved financial decision-making by providing timely and accurate information that can be used to inform strategic choices. Numerous theoretical models and frameworks have been put forth in order to conceptualize the correlation between technology fit and AIS optimization. The Technology-Organization-Environment (TOE) framework, developed by Tornatzky and Fleischer in 1990, offers a comprehensive viewpoint that takes into account the various technological, organizational, and environmental elements that impact the adoption and integration of technology in the context of Accounting Information Systems (AIS). Moreover, the IT Governance (ITG) framework, as proposed by Aleem and Al-Qirim (2012), underscores the significance of aligning technology with the viability and effectiveness dimensions of Accounting Information Systems (AIS) in order to attain improved performance.
There are several factors that exert influence on the compatibility of technology within an Accounting Information System (AIS). The significance of organizational goals and objectives in influencing technology decisions cannot be overstated. Organizations strive to utilize technology effectively in order to enhance accounting processes and optimize financial analysis (Rodriguez & Thompson, 2014). The impact of user needs and preferences on technology fit cannot be overlooked, as the acceptance and engagement of users play a pivotal role in the successful integration of Accounting Information Systems (AIS). Furthermore, the level of fit achieved is influenced by various factors, including the complexity and flexibility of the selected technology, as well as its compatibility with existing systems.
The multifaceted nature of the impact of technology fit on Accounting Information Systems (AIS) performance is evident. Multiple studies have demonstrated that a greater degree of alignment between technology and organizational needs results in enhanced precision of data, decreased occurrence of errors, and improved quality of financial reporting. Moreover, it has been observed that the alignment between technology and organizational requirements has a favorable impact on the efficiency and effectiveness of decision-making procedures, facilitating the generation of timely and evidence-based insights. Furthermore, it has been observed that organizations that successfully attain technology alignment in their Accounting Information Systems (AIS) frequently encounter enhanced operational efficiencies, cost reductions, and a heightened level of competitiveness.
The study conducted by Ghasemi et al. (2019) is an empirical inquiry into contingency theory. Its objective is to examine the association between technology, considered as a contingent variable, and the characteristics of Management Accounting Systems (MAS), with a focus on their impact on managerial performance. The study aims to enhance comprehension regarding the influence of technology adoption in Management Accounting Systems (MAS) on managerial decision-making and the overall performance of organizations.
In their study, Ohiomah et al. (2019) undertake the validation of a conceptual model that draws upon the Technology-Task-Fit theory. The primary focus of their investigation lies in the examination of Learning Management Systems (LMS) and their impact on the performance of inside sales. This study examines the mediators through which Learning Management Systems (LMS) influences sales performance, specifically task characteristics, selling behavior, and salesperson characteristics. This study offers valuable insights into the factors that contribute to enhanced sales outcomes through the efficient utilization of Learning Management Systems (LMS). The study conducted by García et al. (2019) serves a twofold objective: firstly, to demonstrate the potential of Information Systems Engineering (ISE)in providing advanced technological solutions through the utilization of conceptual models, and secondly, to underscore the significance of practical exercises based on Information Systems Engineering (ISE) for the purpose of technology selection. The study contributes to the guidance of organizations in achieving optimal technology fit by emphasizing the significance of Information Systems Engineering (ISE) in technology implementation.
In their recent study, Chen et al. (2021) proposes the Sense-Transform-Drive (STD) conceptual model of Business Intelligence (BI), drawing upon the theoretical frameworks of dynamic capabilities theory and organizational evolutionary theory. The purpose of this model is to provide an explanation of the fundamental capabilities of Business Intelligence (BI) and their importance in facilitating organizational adaptation and success in dynamic environments. The present study makes a valuable contribution to the domain of Business Intelligence (BI) and organizational agility. In their recent study, Lutfi et al. (2022) investigate the utilization of Accounting Information Systems (AIS) within the context of Small and Medium-sized Enterprises (SMEs) in Jordan. The study examined the factors that precede the implementation of Accounting Information Systems (AIS) and their potential impact on sustainable business performance. The study aims to fill the existing void in the adoption of Accounting Information Systems (AIS) within Small and Medium Enterprises (SMEs). It seeks to offer valuable insights into strategies that can facilitate the integration of technology within smaller enterprises. The study conducted by Wong et al. (2022) investigates theories related to the acceptance of technology and proposes a conceptual framework for assessing the association between task requirements and the characteristics of digital twin technology. Their study aimed to enhance comprehension of the factors that influence technology adoption and its effects on organizational performance by examining the relationship between task requirements and technology features.
Theoretical Framework: Conceptualizing the Relationship between Technology Fit and Optimizing AIS Performance
The primary objective of this paper is to present a theoretical framework that seeks to offer a comprehensive comprehension of the correlation between technology fit and the optimization of Accounting Information Systems (AIS) performance. The framework presented in this paper encompasses essential elements that emphasize the interaction between technology adoption and characteristics of Accounting Information Systems (AIS). This interaction ultimately results in enhanced operational efficiencies and more informed managerial decision-making. The framework provides valuable insights into the achievement of technology fit in Accounting Information Systems (AIS) and its implications on organizational performance by conceptualizing this relationship. The theoretical framework comprises four fundamental components.
Alignment between technology and the organization's needs and goals.
The central focus of the proposed theoretical framework centers around the core notion of "Technology Fit," which plays a crucial role in determining the extent to which technology solutions are in harmony with the particular requirements and goals of an organization's AIS. The concept of technology fit evaluates the degree to which the selected technology aligns with the specific demands of the Accounting Information Systems (AIS) environment. This entails a comprehensive assessment of multiple factors, including the appropriateness, congruence, and flexibility of the technology to meet the particular requirements and complexities of the organization's accounting procedures.
The concept of technology fit encompasses various dimensions to ensure the smooth integration and efficacy of technology within the Accounting Information System (AIS). The concept of suitability entails evaluating the extent to which the technology solution aligns with and fulfills the intended objectives of the Accounting Information System (AIS). This inquiry pertains to the technology's ability to effectively manage the intricacy of accounting data, execute transactions with efficiency, and generate financial information that is both accurate and dependable.
The concept of compatibility delves into the capacity of technology to effectively coexist and collaborate with the pre-existing infrastructure and software applications within the Accounting Information System (AIS). This paper studies the compatibility of the new technology with the existing accounting systems and databases, focusing on its ability to interact and interface seamlessly without compromising data integrity or causing disruptions. The concept of adaptability pertains to the capacity of technology to effectively incorporate and respond to modifications and advancements within the accounting field. The accounting landscape is subject to ongoing changes, necessitating technology that can effectively adapt and integrate new functionalities and features in accordance with emerging requirements and industry best practices.
In addition, the concept of technology fit encompasses a range of factors that are specific to the organization. These factors include the characteristics of the organization's accounting processes, the intricacy of its financial data, and the preferences and usability need of its users. In order to ensure optimal alignment between the technology and the organization's Accounting Information System (AIS), it is imperative to possess a comprehensive understanding of the organization's unique needs and characteristics.
The achievement of an elevated level of technology compatibility ultimately leads to the optimization of system performance and the enhancement of efficiency in the context of an Accounting Information System (AIS). The integration of technology with the Accounting Information System (AIS) has the potential to enhance operational efficiency by streamlining processes, automating repetitive tasks, minimizing manual errors, and enhancing data accuracy. Consequently, this enables the accounting department to provide punctual and dependable financial data, which is crucial for effective decision-making and strategic formulation.
The integration of the technology fit concept into the theoretical framework enables organizations to enhance their ability to navigate the intricate landscape of adopting Accounting Information System (AIS) technology with greater effectiveness (Dumitriu et al., 2020). The framework functions as a tool for evaluating and choosing technological solutions that are most compatible with the distinct requirements and goals of the organization, ultimately resulting in a more streamlined, productive, and optimized accounting information system.
AIS Characteristics
The proposed framework acknowledges the unique characteristics and roles of Accounting Information System (AIS) as a central component that has a substantial impact on the notion of "Technology Fit." The characteristics of Accounting Information System (AIS) encompass a diverse array of essential elements that collectively establish the role and extent of the accounting system within the organization.
Data processing is a fundamental aspect of Accounting Information System (AIS) characteristics. Accounting Information System (AIS) play a crucial role in the efficient processing of extensive financial data, encompassing various aspects such as transactions, balances, and other pertinent financial records (Thoa et al., 2021). The framework recognizes the significance of comprehending the magnitude, intricacy, and regularity of data processing necessitated by the accounting procedures of the organization. The comprehension of this concept is crucial for the identification of technological solutions that can effectively manage the volume of data and offer real-time processing capabilities, thereby guaranteeing seamless and prompt execution of accounting tasks.
Financial reporting plays a pivotal role in the overall framework of Accounting Information Systems (AIS). Organizations heavily depend on their Accounting Information Systems (AIS) to produce precise and comprehensive financial reports, encompassing income statements, balance sheets, cash flow statements, and various financial analyses. The framework acknowledges the importance of aligning technology solutions with the organization's specific reporting requirements. This alignment is crucial in order to guarantee the reliability of the financial reports, ensure compliance with accounting standards, and meet the expectations of stakeholders.
Decision support is an essential dimension of the characteristics of Accounting Information Systems (AIS) and have become indispensable tools for management in making informed decisions and developing strategic plans. These systems provide valuable financial insights and analysis, which are crucial for effective decision-making and strategic planning. The framework places significant emphasis on the selection of technology solutions that possess the capability to effectively facilitate decision-making processes. This includes the provision of data analytics, forecasting capabilities, and scenario modeling functionalities.
Compliance plays a crucial role in the characteristics of an Accounting Information System (AIS), particularly within the framework of financial regulations and accounting standards. Accounting Information System (AIS) are obligated to comply with a multitude of legal and regulatory mandates in order to guarantee the precision, confidentiality, and reliability of financial information. The framework acknowledges the importance of technological solutions that can enable adherence to these regulations, encompassing aspects such as data privacy, internal controls, and audit trail functionalities.
The consideration of the distinctive attributes of Accounting Information System (AIS) within the framework empowers organizations to make well-informed decisions in the assessment and implementation of technological solutions. A comprehensive comprehension of the distinct requirements of accounting procedures facilitates the identification of technological remedies that can be seamlessly integrated into the current Accounting Information System (AIS) framework. This integration ultimately enhances the overall performance and efficiency of the system.
Furthermore, the framework facilitates a comprehensive perspective on the alignment between technology and organizational needs by recognizing the interdependence of various characteristics of Accounting Information Systems (AIS). Each aspect, including data processing, financial reporting, decision support, and compliance, mutually influence and enhance one another. Hence, it can be argued that the implementation of a technology solution that aligns with multiple characteristics of an Accounting Information System (AIS) can provide a more comprehensive and synergistic approach towards optimizing the overall efficiency and effectiveness of the Accounting Information System (AIS).
Therefore, the framework's acknowledgment of the distinct attributes of Accounting Information System (AIS) plays a pivotal role in discerning technological remedies that are most appropriate for the accounting procedures of the organization. The aforementioned comprehension guarantees the attainment of technology fit, thereby facilitating the seamless integration of technology and the subsequent enhancement of the efficiency and effectiveness of the accounting information system. Consequently, this outcome yields substantial advantages for the organization and its stakeholders.
Organizational Context
The concept of "Technology Fit" is not universally applicable, but rather depends on specific circumstances and conditions. The proposed framework recognizes the fundamental principle that the accounting information system operates within a distinct organizational context. In order to achieve a harmonious integration of technology and the accounting requirements of an organization, it is imperative to consider three key elements of the organizational context: the organizational structure, culture, and strategic objectives.
The concept of organizational structure encompasses the configuration and interrelation of departments and functions within an organization. Various organizational structures necessitate distinct accounting requirements and procedures. One potential advantage of a decentralized organization is its ability to accommodate diverse accounting requirements within its multiple business units. This flexibility allows each unit to tailor its accounting practices to its specific needs, potentially enhancing efficiency and accuracy in financial reporting. In contrast, a centralized organization typically adopts standardized accounting processes across all divisions. While this approach promotes consistency and comparability in financial information, it may limit the organization's ability to adapt to the unique accounting requirements of individual units. The framework acknowledges the importance of customizing technology fit to align with the unique organizational structure. This is crucial in order to facilitate the seamless integration of the selected technology into the existing accounting workflows and to enhance the efficiency of information flow within the organization.
The influence of organizational culture on the attitudes, values, and behaviors of employees is of utmost importance. The perception, utilization, and dissemination of accounting information within an organization are significantly impacted by various factors. The consideration of an organization's culture is essential in the framework to ensure that the selected technology is in harmony with the cultural norms prevalent within the organization. This alignment is crucial as it facilitates user acceptance and adoption of the technology. The adoption and effective utilization of technology solutions by employees are more likely to occur when these solutions are aligned with the prevailing culture. This alignment contributes to improved performance of the Accounting Information System (AIS).
Strategic objectives encompass the overarching and enduring goals and trajectory established by the leadership of an organization. The framework acknowledges the importance of aligning the technology fit requirements of an organization's Accounting Information System (AIS) with its strategic objectives. If an organization aims to expand into international markets as a strategic goal, it is imperative that the technology solution selected for the Accounting Information System (AIS) is capable of facilitating multi-currency accounting and reporting functionalities. The integration of strategic objectives into the technology fit analysis framework guarantees that the selected technology aligns with the organization's overarching goals and facilitates its expansion and progress.
Moreover, it is important to recognize that the framework takes into consideration the diverse accounting requirements of different organizations, which can be attributed to various factors including industry dynamics, company size, and the competitive environment. One example of varying accounting requirements can be observed between a manufacturing company and a financial services firm. The size of an organization plays a significant role in determining its technology fit requirements. Larger organizations often necessitate more robust and scalable technology solutions to effectively meet their operational demands. Furthermore, it is important to consider that the competitive landscape has the potential to significantly affect an organization's emphasis on innovation and cost efficiency. This, in turn, has a direct impact on the technology fit requirements of the organization.
Thus, it can be argued that the framework acknowledges the notion that technology fit cannot be evaluated in isolation, but rather should be understood as a multifaceted interaction within the organizational context. The framework ensures that technology solutions are carefully selected to match the unique accounting needs and align with the overall business strategy by incorporating the organizational structure, culture, and strategic objectives as key components. This comprehension facilitates a more efficient incorporation of technology into the accounting information system, thereby improving its functionality and making a positive impact on the organization's overall achievements.
Technology Adoption Model
Theoretical frameworks often incorporate various models to gain a deeper understanding of complex processes. In this case, a technology adoption model has been employed to examine the process by which technology fit is attained. This paper studies the factors that influence the adoption of technology within the context of Accounting Information Systems (AIS), drawing upon established theories in technology adoption, such as the Technology Acceptance Model (TAM) (Davis, 1989) and the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003). The present model aims to evaluate the perceptions of users regarding the usefulness, ease of use, and social influences of technology in order to elucidate their intention to adopt said technology and attain a heightened level of technology fit.
The theoretical framework proposed in this paper makes a valuable contribution to the achievement of technology fit in Accounting Information Systems (AIS). It offers a systematic and comprehensive approach to the integration of technology. The identification of technology solutions that closely align with the characteristics of Accounting Information System (AIS), organizational needs, and user preferences is facilitated by it. The framework provides organizations with valuable guidance in the selection and implementation of technology solutions that improve data accuracy, streamline accounting processes, and facilitate effective decision-making by examining the relationship between technology fit and Accounting Information System (AIS) performance. The selected theoretical framework encompasses technology adoption models that have undergone rigorous validation and have been widely utilized across diverse settings. The framework takes into consideration the complexities and distinctive features of Accounting Information System (AIS) technology adoption by incorporating these models with Accounting Information System (AIS) characteristics and the organizational context. The framework's relevance and applicability are enhanced, thereby making it practical and adaptable for diverse organizations aiming to optimize their Accounting Information System (AIS) in real-world settings.
The theoretical framework that has been proposed provides a thorough conceptualization of the correlation between technology fit and the optimization of Accounting Information System (AIS) performance. The framework offers organizations valuable insights for effectively achieving technology fit by integrating technology adoption models, Accounting Information System (AIS) characteristics, and the organizational context. The theoretical approach discussed herein possesses practicality and adaptability, making it a suitable framework for facilitating informed decision-making in the context of technology selection and implementation. Consequently, this approach has the potential to enhance the performance of Accounting Information System (AIS) and improve organizational outcomes.
Conceptual Analysis: Technology Fit in the Context of Accounting Information Systems
This conceptual analysis focuses on the fundamental elements of "Technology Fit" as it pertains to Accounting Information Systems (AIS). The concept of technology fit pertains to the congruence between technological solutions and the particular requirements and goals of an organization's accounting procedures (White & Williams, 2018). Gaining a comprehensive comprehension of the various aspects that influence the suitability of technology and its subsequent effects on the efficiency, effectiveness, and overall performance of Accounting Information Systems (AIS) is of utmost importance for businesses aiming to maximize the optimization of their Accounting Information System (AIS). There exist four key aspects that exert an influence on the alignment of technology with Accounting Information Systems (AIS).
Organizational Goals: Technology fit is mostly determined by how well the aims of the organization line up with the aims of the technology (Smith & Johnson, 2019). It is imperative that businesses determine their long-term goals and align them with the functionalities provided by the available technological solutions. Technology should support faster data integration and reporting capabilities, for instance, if a company wants to improve the efficiency of financial reporting.
System Requirements: The determination of technological fit is heavily influenced by the requirements of Accounting Information Systems. Essential needs for an Accounting Information System (AIS) encompass robust data processing capabilities, secure data storage, scalability, and real-time reporting. In order to attain an ideal technological fit, it is imperative that the selected technology adequately meets the precise requirements outlined (Jackson & Davis, 2017).
User Needs and Preferences: The successful integration of technology relies heavily on the acceptance and engagement of users. The comprehension of user needs, preferences, and skill levels is crucial when choosing technology solutions that are in line with the requirements of the end-users Therefore, to understand users’ reactions to Information Technology (IT), researchers tended to focus on the perceptions related to IT use, particularly the ease of use and usefulness, besides other related factors (Venkatesh & Davis, 2000). The promotion of user adoption and satisfaction can be further enhanced through the implementation of user-friendly interfaces and training programs.
Integration with Existing Systems: Artificial intelligence systems are frequently integrated into a broader technical ecosystem within a business. The degree to which the selected technology is compatible and can be integrated with pre-existing systems, such as Enterprise Resource Planning (ERP) systems, has a significant impact on its suitability for implementation (Wan Mohd Nazif et al., 2009). The implementation of seamless integration results in the reduction of data silos and the enhancement of overall operational efficiency.
The efficiency of an Accounting Information System (AIS) is significantly influenced by the degree of alignment between technology and the system's requirements (Shazalina & Wan Mohd Nazif, 2015). This alignment is achieved through the integration of technology, which enables the streamlining of accounting processes, automation of routine tasks, and reduction of manual intervention (Ng et al., 2021). An appropriately aligned technological solution enhances the efficiency of data processing, resulting in expedited and more precise financial reporting. Automated workflows facilitate more efficient transaction processing, resulting in time and resource savings. The effectiveness of an Accounting Information System (AIS) is enhanced through the integration of technology, which facilitates the provision of pertinent and dependable financial information that aids in decision-making processes. The congruence between technology and the characteristics of an Accounting Information System (AIS) guarantees the effective capture and analysis of essential financial data. This practice promotes the ability to make well-informed decisions, enhances the quality of financial analysis, and facilitates the process of strategic planning. The attainment of technology fit has a positive influence on the overall effectiveness of Accounting Information System (AIS) (Lee & Kim, 2016). The implementation of an efficient and effective Accounting Information System (AIS) has been found to result in various benefits, including improved data accuracy, reduced error rates, and enhanced compliance with regulatory requirements. As a result, this phenomenon enhances the overall efficiency of the organization and reinforces the trust and assurance of stakeholders.
The significance of technology fit in optimizing Accounting Information System (AIS) is underscored by the conceptual analysis. A comprehensive comprehension of the various factors that impact technology fit is crucial in the process of selecting and implementing technology solutions that seamlessly align with the organization's Accounting Information System (AIS). These factors include organizational goals, system requirements, and user needs. Organizations can enhance the efficiency, effectiveness, and overall performance of their Accounting Information System (AIS) through the attainment of technology fit. This achievement enables better decision-making processes and facilitates the organization's ability to remain competitive in the dynamic business landscape. The integration of technology within the framework of Accounting Information System (AIS) is of paramount importance for organizations aiming to prosper in the era of digitalization and harness the complete capabilities of their financial data to achieve sustainable growth and prosperity.
Implications for Practitioners, Researchers and Policymakers
The conceptual analysis and framework that have been provided create substantial consequences for practitioners, researchers, and policymakers operating within the domain of Accounting Information Systems (AIS). Practitioners in the fields of accounting and finance can enhance their decision-making on technology adoption by acquiring a comprehensive awareness of the significance of technological fit. By strategically aligning technological solutions with the specific demands of a business and the features of its Accounting Information System (AIS), professionals can optimize operational efficiencies, enhance the accuracy of data, and facilitate more informed decision-making processes. The involvement of end-users in the technology selection process is of utmost importance for practitioners, as it serves to enhance user acceptance and facilitate the successful implementation of technology.
Scholars specializing in the domain of Accounting Information System (AIS) and technology adoption have the opportunity to further develop the theoretical framework put forth in this analysis. Additional empirical investigation is necessary to confirm the correlation between technology fit and Accounting Information System (AIS) performance across many industries and organizational settings. Conducting an investigation into the precise determinants that influence the compatibility of technology and its subsequent effect on the efficacy of Accounting Information Systems (AIS) would yield significant knowledge for prospective research endeavors.
Policymakers and regulatory bodies are essential actors in determining the environment of digital transformation. The comprehension of the ramifications of technology fit on the performance of Accounting Information Systems (AIS) can provide guidance to policymakers in the development of legislation and frameworks that promote the adoption of technology solutions that are in line with the accounting requirements of companies. Policymakers may also provide support for projects aimed at enhancing technology awareness and skills among accounting professionals, with the goal of promoting effective integration of technology.
Conclusion
The present paper places significant emphasis on the conceptual analysis of "Technology Fit" and its pivotal function in the optimization of Accounting Information Systems (AIS). Organizations can greatly improve the efficiency, efficacy, and overall performance of their AIS by establishing a robust alignment between technology solutions and numerous organizational aspects. These elements include corporate goals, Accounting Information System (AIS) characteristics, and user needs.
The concept of technology fit plays a crucial role in ensuring the smooth integration of technology into the Accounting Information Systems (AIS) environment. When technological solutions are appropriately matched with the objectives of the company and the characteristics of the Accounting Information System (AIS), they have the potential to enhance and reinforce the existing accounting processes in a more efficient manner. This alignment guarantees the seamless integration of the technology into the organization's workflows and operations, hence avoiding disruptions and improving the system's performance. Furthermore, the recognition and effective response to user needs play a crucial role in the attainment of successful technology adoption within the context of Accounting Information Systems (AIS). Organizations can enhance overall performance by strategically choosing technology solutions that align with the preferences and usability requirements of end-users. This approach promotes user acceptance and engagement with the Accounting Information System (AIS), hence fostering improved outcomes.
The paper's contribution to the subject of Accounting Information System (AIS) is rooted in its thorough conceptual analysis and recommended framework, which emphasizes the importance of technological fit. The paper provides valuable insights into the correlation between technology and Accounting Information System (AIS) optimization, thereby assisting organizations in making well-informed decisions during the process of technology solution selection and implementation. The present paper adopts a theoretical framework that enables scholars and professionals to acquire a more profound comprehension of the influence of technology fit on the optimization of Accounting Information Systems (AIS). The framework's insights can be utilized to facilitate the development of more efficient methods for the integration of technology into Accounting Information System (AIS), resulting in improved decision-making and increased efficiency.
In general, the paper highlights the significance of technology fit in optimizing Accounting Information System (AIS) and provides useful insights to the academic discipline of Accounting Information System (AIS). The paper establishes the importance of technology fit and provides a theoretical framework to assist businesses in their adoption of technology. This lays the foundation for future research and practical applications in the dynamic field of accounting technology. The aforementioned paper establishes a fundamental basis for conducting further investigation and examination of the impact of technology fit on enhancing the efficacy of Accounting Information System (AIS) within diverse organizational settings.
Future research should prioritize empirical investigations in order to verify the suggested framework's effectiveness in various industries and organizational contexts. Furthermore, an examination of the impact of artificial intelligence, data analytics, and blockchain on the improvement of technological alignment within the field of Accounting Information Systems (AIS) is a compelling area for future research. The comprehension and effective utilization of technological fit will remain crucial in guaranteeing the prosperity of firms in the digital age, as well as in leveraging their Accounting Information System (AIS) for strategic decision-making and maintaining a competitive edge.
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15 November 2023
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Shuhidan, S. M., Rashid, N., & Awang, Y. (2023). Conceptual Analysis of Technology Fit in the Optimization of Accounting Information Systems. In J. Said, D. Daud, N. Erum, N. B. Zakaria, S. Zolkaflil, & N. Yahya (Eds.), Building a Sustainable Future: Fostering Synergy Between Technology, Business and Humanity, vol 131. European Proceedings of Social and Behavioural Sciences (pp. 1136-1150). European Publisher. https://doi.org/10.15405/epsbs.2023.11.92